FAFSA denied all grants despite deceased parent - only offered loans?

same thing happened to my son last year. the formula doesnt care if a parent is deceased, just looks at the income of whoever filled out the fafsa. did you have any retirement withdrawals or anything that would make your income look higher on paper?

A few things to consider here: 1. The deceased parent status doesn't automatically qualify your daughter for more aid - it's primarily about whose income is counted in the FAFSA calculation. 2. That $11,000 401k withdrawal you mentioned is definitely part of the issue. For FAFSA purposes, that counts as income even though it was for necessary expenses. This could have pushed your SAI above the Pell Grant threshold. 3. Did you list any assets like savings accounts, additional property, or investments? Even modest assets can impact the SAI calculation. 4. You should definitely contact your daughter's financial aid office at her school directly. They can review your specific situation and potentially offer a professional judgment adjustment based on the circumstances.

This happened to my cousin and we found out it was because of a one-time insurance payout that got counted as income even though it wasn't regular money they could count on. The whole system is RIGGED against people who have any tiny financial cushion even if they're struggling!!! They expect you to be completely BROKE before they'll help!!!

have u tried calling the Federal Student Aid number? they can sometimes explain why ur SAI is higher than expected

When I was having trouble getting through to FSA about my daughter's verification issues, I used a service called Claimyr (claimyr.com) that basically holds your place in line and calls you back when an agent is available. Saved me from wasting hours on hold. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ But honestly, your best route will be requesting a professional judgment review from the financial aid office at your daughter's school. The 401k withdrawal + life insurance payout are definitely affecting your calculation, but schools have the authority to make adjustments for special circumstances like yours. Bring documentation of the deceased parent, the 401k withdrawal reason (medical bills), and current expenses to show your actual financial situation.

Wait, I'm confused. I thought having a deceased parent automatically makes you an independent student on FAFSA? That's what happened with my friend's application last year.

I went through something similar with my FAFSA application after my mom passed. What really helped was submitting a special circumstances letter to each college's financial aid office explaining the situation in detail. Almost all schools have a process for this, sometimes called "professional judgment" or "financial aid appeal." In my case, two of the three schools adjusted my aid package significantly after reviewing our circumstances. Make sure you include documentation of medical bills, the death certificate, and anything showing your current financial situation. Don't just accept the initial FAFSA result - the formula often doesn't capture real-life situations well, especially with one-time financial events like your 401k withdrawal.

also make sure you didnt accidenally check the wrong box somewhre on the fafsa. my friend had similar problem and it turned out she checked a box saying they didnt want to be considered for federal student aid by mistake!

One more thing to consider - is your daughter planning to attend a school that provides institutional aid beyond federal aid? Many colleges have their own grant programs that use different formulas than FAFSA. Some even use the CSS Profile instead of or in addition to FAFSA, which takes different factors into account. Even with a high SAI, she might qualify for significant institutional grants or scholarships from certain schools, especially if they know about your family circumstances. Don't limit yourself to just what the FAFSA says.

Thank you everyone for all your help. I feel much better knowing there are options to appeal this. I have an appointment with financial aid next week, I'm gathering all our documentation about the 401k withdrawal for medical expenses, death certificate, and current financial situation. I'll also check with the school about their institutional aid options. Fingers crossed we can get this sorted out - my daughter has worked so hard and deserves this opportunity.

Good luck with your appointment next week! Just wanted to add that when you meet with financial aid, be prepared to explain not just the 401k withdrawal but also how your current monthly budget looks without that one-time money. They often want to see that your day-to-day financial situation doesn't match what the FAFSA formula calculated. Also, if your daughter hasn't already, make sure she's applying for outside scholarships too. With your family's circumstances, she might qualify for scholarships specifically for students who've lost a parent or are from single-parent households. Every bit helps when you're trying to avoid taking on too much debt. You're doing everything right by advocating for her - don't give up!